President Edgar Lungu left the IMF mission team that recently visited Zambia frustrated after he refused to agree to terms of their proposed financing facility for Zambia.
Highly placed sources at the Ministry of Finance have revealed that the IMF team that left Zambia on Friday were ready to offer close to US$1 billion extended facility to help stabilise the Zambian economy.
One of the key conditions to accessing the facility however was that President Lungu announces a range of austerity measures to help with fiscal consolidation.
The IMF team led by Mr Tsidi Tsikata demanded that the PF Government cuts fuel subsidies.
The sources also revealed that the IMF further demanded that Government realigns its expenditure on ongoing road and other infrastructure programmes.
They said President Lungu told the IMF team that he is reluctant to withdrawal fuel subsidies fearing that it would result in a spike in fuel prices which could cost him the next election.
The sources also revealed that President Lungu felt that slowing down on the road projects would be a sign of failure which could spell doom for his administration.
The treasury sources said Finance Minister Alexander Chikwanda was more receptive to the IMF package but was left frustrated by President Lungu’ refusal to entertain the IMF proposals.
‘What this means is that we are going to experience a very difficult period going forward. We were optimistic that we would strike a deal with the IMF to ease the pain but it appears our leaders are not reading the signs of the times,’ one source said.
‘What we were proposing is similar to what was agreed with Ghana last month and we were able to provide $918 million to the authorities and you can now see some stability with the Cedi. This has however come about because the Ghanaian government agreed to withdraw subsidies on fuel.’
And a member of the IMF team that visited the country also confirmed that there was nothing concrete that emerged from the mission visit because the Zambian Government was resistant.
‘There seems to be deep-seated misgivings about the IMF which we feel is unwarranted because as much as the Fund has had bad history in this country, it has undergone serious reforms over the years and we thought Zambia, having invited us over here would be more willing to consider our proposals but that has not been the case,’ the source whose identity has been withheld said.
‘Our team was left wondering whether this man (President Lungu) really wants to win the next election. We were of the view that the aid package we were proposing would provide the much needed fiscal relief in the short to medium term and help stabilise the economy,’ the source said.
‘What we were proposing is similar to what was agreed with Ghana last month and we were able to provide $918 million to the authorities and you can now see some stability with the Cedi. This has however come about because the Ghanaian government agreed to withdraw subsidies on fuel.’
But Secretary to the Treasury Fredson Yamba in a brief statement said the Zambian Government recognizes that risks remain and mainly relate to the need to contain fiscal pressures, particularly those related to the costs of electricity imports and the attainment of cost reflective fuel pricing, following the steep deprecation of the Kwacha.
Mr Yamba also confirmed that increased spending on subsidies partly due to the depreciation of the Kwacha also poses risks to the treasury including the need to complete ongoing infrastructure projects.
‘Government will ensure that it re-aligns expenditures to counter some of the pressures. It will also limit its borrowing in the domestic market and will also regularly review budget implementation with the objective of taking other corrective policy actions. The Zambian Government will undertake consultations to define the forms of further engagement with the Fund.’
Aneba bantu whst subsidies are there on fuel with price high as it is? I want Lungu to go through as President again, why? So the Zambians can feel the impact of his lack of vision. ….it will be dog eat dog situation. HH young as he is will then take over, by that time Kambwili will even be looking so ugly and won’t be minister, looking like shiit !
I tell you we got a looney for a President, how can
Thank you for the roads but even a very bad economic situation can lose him the 2016 elections. People back home should be looking for life vests because our country is sinking very fast.
Hers a fact : no country has ever developed by following IMF programs. So much as Lungu is clueless, he knows that it is better to follow his economic suicide mission than to follow IMF blind alleys.
This is a case of a poor man refusing sound advice because of his pride yet he does not know how to address the problems he is facing. Surprisingly he still goes of drinking every night oblivious to the suffering of his family. Listen to the IMF concerns carefully government needs to realign expenditure. But this is not a listening government so it’s up to the people of Zambia to realign PF in 2016.
I can bet you the mines are still enjoying the fuel and energy subsidies….it doesnt take the evil IMF to tell you that there is too much waste especially in road construction too much stealing how can a kilometre cost $1million to construct…there is simply no value engineering employed to get the best deal for from contractors.
Back Teeth Lungu, it is not about what is good for Zambia. Lungu is basing his rejection on 2016 Presidential elections. The man is simply selfish!
The way Edgar thinks is to me so difficulty to comprehend. What is his legacy now, what will people remember him for? He is only thinking of elections, ku tumpa.
Look at the way Amos Chanda is sitting, sign that ifintu nafibipa.
I applaud President Lungu for rejecting the IMF. We don’t need those money bandits. They fly in from whatever holes they come from and tell us how we should run our country.We have water, land, the sun and people ..we shall survive.Zambians just need to start looking within and not without.I have never liked Lungu but here he has shown some balls.Thumbs up.Today you deserve the infintu ni Lungu slogan even from me a UPND supporter.Zambia comes first!
Why a highly conditional $1 billion package from a murder board against developing national states? What reforms has this murder board undergone or shown remorse for its history of damage to developing nations? I was in the international financial institutions for 15 straight years and would never advise a developing country in distress to look to IMF. Which distressed developing nation that bought in the economic hit man has ever rebound? Yes we need austerity measures not strangulation the people completly.
Lungu is facing a Catch-22 situation, there’s no way out with “IMF” or “NO IMF”.
Kudos, Mr. President … This is one of the best decisions you have made since taking over as CEO of the smart people of the Zambian Enterprise. The IMF’s package was a killer pill in that it would have made us puppets to the Brentwood.
Further still, it was not designed with a long term objective; a mere quick fix it was. We can achieve short term objectives by cutting down on spending in non discretionary while diverting those savings towards intensive energy production using solar and wind technologies.
If we focused on that with the right partnerships from the Germans, Scandinavians, Americans and Japanese using transfer mechanisms, we would be energy independent in 10 months as far as electricity imports are concerned.
For fuel, we need to engage the Chinese/Angolans to…
Continued …
For fuel, we need to engage the Chinese/Angolans to finish the pipeline in 10 months. Taking these 2 initiatives immediately delays instant gratification but the overall objectives and benefit outweigh the good for nothing $1B from IMF and we would do these on our own terms.
Once again, great move and I am proud of your decision on this note. Don’t worry about the election, Zambia is greater than any single one of us and you just demonstrated that piper got it wrong this time around.
We have answers from within and they came in signing all the political praises, tried to coarse you and dangled a carrot to make you selfish and focus on nothing but re-election but you did what every objective CEO does. You chose posterity in the face of austerity!
And just on a last note; the fundamentals of the Zambian economy are strong. Huge or minimal corrections are expected in the fiscal areas of any economy but these are market corrections.
In fact, Zambia’s better days are ahead. The current ambitious infra-structure initiatives taken by your administration have long term benefits. Some of those benefits would only materialize in decades ahead, some long after you’re gone.
So, don’t sweat the minor stuff. History has a way of rewriting itself, lastly it’s time to let Bashikulu Ba Chikwanda go. You need fresh perspectives from every angle. He has done great so far but the future now belongs to a new generation of leaders.
You need a new face at Finance, a new CFO! God speed … You have a lot of qualified youngsters both at…
Continued …
at Finance or BOZ. You may even look across the aisle in parliament. There’s no shortage of brain power among the smart people of our enterprise … Our time is now. Zambia’s time is now to stand and sign of our great nation proud and free, God speed once more!
@Maharaji, the decision is about not losing the elections not because the austerity package is not needed. If the austerity measures are implemented PF may become more unpopular but also that it will be difficult for them to divert money to their campaigns. If copper prices do not recover quickly, they are likely to still take the package after the elections. Watch this space.
@Buck Teeth, the IMF does not provide funding for development. That is the job of the World Bank. The IMF provides financial support to help ameliorate economic instability when it arises. Like is the case with any lender, borrowed money comes with conditions. Unless copper prices recover, we shall take an IMF package soon. Just watch this space.
I dont like IMF, we dont need them. I will tell you what we need, though; a new Government that will fix these economic issues that we are experiencing. IMF is not the answer. Please, no more slavery again.
The writing is on the wall.
So Lungu is hoping to implement such measures if he wins the 2016 elections. He had a golden opportunity to cut spending immediately after winning elections in January. But what we saw was creation of more ministries and unnecessary spending. He is now in a quagmire, he can’t reverse those decisions and so the only way out for him is to hope for a fresh start next year. For a man with nothing to lose if he wins 2016 elections, knowing he won’t seek re-election in 2021, he will be more of a passive President and as an electorate, I will think twice to cast a vote on him. But with the type of electorates we have in Zambia, he may just about get away with it and get re-elected which is a shame really
they are so confident they will win i am sure the votes have already being rigged
But I thought the fuel and mealie meal subsidies where removed under Sata’s administration. Did they come back?
With the depreication of the kwacha, the fuel should have gone up further but they have secretly re-introduced subsidies and that is why the price of fuel is not moving up in tandem with the messed up exchange rate
Fuel has been the mystery equation to the Zambian economic mess caused by the Kwacha rout. Why has fuel remained the same price despite the Kwacha collapse? There is certainly a massive political influence on the price of fuel. The price of Fuel today in Zambia is fake and fraud and not reflective of the true cost. This is where politics and economy diverge and will cause massive future problems for a country going foward. This is getting more complex
ALL THE PANAFRICAN PRESIDENTS HAVE TO SUPPORT HIM AND THE OTHERS PRESIDENT WHO WANT FREE THEIR PEOPLE ? AFRICA CAN GO WHITHOUT THE EUROPE ?IT S TIME BELIVE OUR POSSIBILITIES /////IM FROM SENEGAL FREE AFRICA////
This is the type of President we want, a man who puts people first not winning elections first.
We thank God for our jubilee President. EL knows that its not IMF which will vote for him next year
but Copperbelt, Lusaka,Luapula,Northern,Eastern,Muchinga and partly Central province respectively.
We all know that Southern , Western, North-Western and partly Central province will vote for President
HH nicknamed Moses wa nomba.
Did you read the article? He rejected the IMF recommendations because there is an election next year, not because he is interested in your well-being. And you vote??
Please read the article again and you will understand that the priority for EL is to win the election next year while your relatives continue suffering! He is sacrificing the country to remain in power!
This is the selfsame docility, folly and stupidity I talk about; ignorance of the highest order by people unable to read between the lines who are happy to be lied to by the likes of BUFFOON KAMBWILI.
READ THE WHOLE ARTICLE AND LET IT SINK IN YOUR DOCILE DOME IF THAT FAILS ASK A LEARNED NEIGHBOR, OR YOUR GRADE 9 DAUGHTER/SON TO INTERPRET FOR YOU.
WAKE UP!!
Wisdom please read the article again. What you are saying and what is in the article are opposite
Wisdom is the thing you are missing!
Lungu has spoken and anyone with a brain now knows that he does not care if Zambians starve TO DEATH as long as he wins the election.
And he will do anything to hide the truth from the Zambian people – until after the election.
Then prices of EVERYTHING will skyrocket and him and his PF will be saying it’s “global” for the next five years!
And that is the biggest problem: Everything is centred on winning Elections!!!!
This is now a well known strategy in Africa.
It is known as *the MUGABE PHENOMENON* .
Destroy the Country completely while you live in absolute luxury travelling the world and spending on credit Taxpayers money.
No surprise Mugabe was the first trip LUNGU made.
Now just watch the Kwacha follow the Zimbabwe Dollar. And count the bodies.
Yes because HH can sell the country to IMF.
But noone can escape that mwebantu! It’s the very nature of democracy for politicians to want to win the elections. Which politician wants to lose elections? Show me one and I’ll show you a looney .
The horrible truth which none of you don’t want to admit is that democracy doesn’t bring you development. In fact it is for the developed states .Those states can afford to have arguments and elections
Under the current state of things, IMF is a lesser evil. Soon, than later, Lungu will return to the IMF and when they come, it will be strictly under their terms and it won’t be funny for the PF. Lungu will not navigate this one.
Cutting Govt expenditure is the language of banks, IMF inclusive, sad if IMF is now thikn we ar bluff,
YOU “AR BLUFF”. And a BIG ONE for that matter.
Think why do they insist on that then ? Think Think Think…would you lend someone a big loan when they still insist on their luxury lifestyle of eating imported cornflakes, take aways and driving expensive cars when they only need one, funding mistresses when their salary can not afford it.
THINK THINK THINK AND WAKE UP!!
Cutting expenditure is not just the language of banks, it is the language of business! It is how you stay in business and not go BANKRUPT!
Lungu is just too dull to understand that, so is now going to bankrupt Zambia.
Weren’t the subsidies removedalready last year? When were they reintroduced?
Wa uuka lelo mwaeche?Pepo are saying,Wake up,Wake up, Wake up!…Speechless, better jus remain mau-less !!
Weren’t the subsidies removed already last year? When were they reintroduced?
The subsidies were removed. The problem is that the kwacha has lost 50% of its value so fuel should have gone up. What that means is that PF is secretly keeping the fuel artificially low using subsidies to gain political favour.
So when the president was refusing the IMF conditions, was his refusal based on expert advise from his economic team or his refusal was just based on the way he feels? Has he got alternatives superior to what IMF is proposing to serve our country from the current free fall we are experiencing? The current chaos cannot go on!
But again to be fair to His Excellency. Views he cud have expressed ar his opinions and can be sujective, cabinet wher the president belongs could put up the official position, IMF and Government ar entities and their communications shud b formal, ours can be on jameson sometimes, cabinet is more formal
My President, you do not get many of these in your job, compliments. Thank you for rejecting the IMF proposal. There is no such thing as a free lunch. Let’s not sell ourselves short. Remember that $1b is printed out of thin air its called quantitative easing. In exchange, they get leverage over our policies and decision making. No thank you. Lend to us on the basis of our balance sheet and leave us to run our own affairs.
The most sensible thing that the President has done! Zambians we need to change our attitude! We need just to work hard in unison and we shall overcome these difficult times! The grounds are now fertile for innovations and not running for help from IMF! Bold step Mr President and Thank you!
So, why was the IMF invited in the first place? It is not as if we did not know what they would say. They were in the country last year to give advice, which was rejected. This invite was quite puzzling to say the least
How come I don’t know that we are still ssubsiding fuel? I see a fake story here. Of recommendations, I’m can come to give this as a solution. HH did a better job than imf
That is the measure of a man Mr. President! We now know what some elements in the opposition stand for! A country should look to its citizenry for developments through innovative ideas and not through begging! Now I know why ECL with all his weaknesses is the President! Thank you!
Well done my president…! IMF is tricky body…! We don’t need them…! We will stand the pressure..! Increasing fuel prices will spell doom to Zambia..! Thanx for the bold decision..!
How long did it take super ken to resist IMF? Jameson is a casino man. To him this is russian roulette. If he’s reelected IMF then can come, if he’s not its up to the next guy. Remember he’s Pontius Pilate.
But whether we like it or not, with the way the economy is messed up, austerity measures will have to be taken at some stage. This mess can not be sorted out by booming copper prices (exports) alone.
Now follow that up with address to the Nation! You will certainly raise the bar high.
IMF cannot and will not develop Zambia.Zambians will develop our country by working hard and stop politicking and spending time on social media..
Hahaha.
Just received a whatsapp message from a good Friend who has lost his Job as an Mine Engineer with Mopani.And this just he wrote.
Man Infintu nafilungula kuno. Kwacha nailungula,Economy nailungula nechito nasho shaamba ukulungula.
Umuntu bamushila icipuna bamudala nokumweba ati ukuposako amano kuli ifili pamulilo fikalungula.Ena alabako amba ukudosa amaJemasoni,malager nokuchilisha Man.Ase asalapuke asanga ifintu nafilungula kale bakamba.
Naitukosela kuno man.
These same allies created the problems we are going through and behind our back come back to offer the solution, what is wrong with these western countries? they think they can enslave us again with their papers so called 1billion dollars which they just print on their f***ing machine and bring it to zambia. problem reaction solution why cant they leave us alone. VIVA ECL Zambia is with you our president, we know these problems are globally and we know who striggered them
You really have no idea what you are talking about!
Zambia HAS ALREADY BEEN ENSLAVED by Sata and Lungu and the EIGHT BILLION THAT THEY HAVE BORROWED!
You dumbass, and your children’s children will now have to pay back this KALOBA.
The IMF know that and are trying to help, but dull Lungu thinks he can just get another EUROBOND and that will fix things.
We’re in the process of building a new airport at KKIA for $500m. Them about $120m at Nkumbula. About $180m at SMKapwepwe. The last eurobonds interest in @ 10% p.a
Guys i really would like a brand new airport. But for now can we live with the old airports and use this money to uplift the lives if those being laid off in Kopola. This much money us even enough for a 300MW thermal power plant. Is a new airport a matter if life and death ?
PF can’t back off those projects, that’s where they steal from by overpricing. That is what the IMF are saying and that is why they were rejected.
be more objective Mr
To be specific fuel subsidies were removed last year but they automatically forced themselves back because of rapidly falling Kwacha and without anybody’s effort or intention.It was just by the grace of God.
…what ECL and his advisors are missing a point that IMF operates like the mafia….their tentacles are all over the financial institutions ECL may turn to…..and will demand the same if not worse conditions…..
…for sure ECL was looking at the short term (2016) impact the conditions may have on electorates and not Zambia as a country…
“What ECL was missing. ….” ha ha ha!
He has missed the plot AND the bus by miles!
God have mercy on his soul!
The clueless clown has no idea what is coming now! And it is not going to be pleasant for him.
Then why invite them in the first place? A publicity stant or sheer stupidity. We are talking about real issues here and some people think this is a joke. This economic quandary that we find ourselves in could plunge the country into chaos if not handled properly. So the only reason of rejecting the IMF’s proposal is losing elections next year? Suppose there were no elections coming next year, then we were going to agree?
Politicians thinks only after their interests and forget about the rest. Its a shame that we are seeing the cookie crumbling right in front of eyes and yet we cannot do anything. Lungu, when you lose next year, you will be so embarrassed that you will disappear from public life into a political abyss and oblivion. Don’t say you did not have a chance to right your…
Imwe naimwe, How can you dismiss them if you do not talk to them and know what they are up to?
KABU is right Know your economy and expenditures well If you internally achieve saving measures ,you will breath much better than being black boxed
The President is right 1 USD Billion for how many years at what Interest coupled with already Debt Cash flows to un roll
The question are; What will your growth be, unemployment be, your current accounts, Your GDP capital formation and also at House hold level the incomes
The current scenario supports internally efforts as opposed to being thrown into a loan shark
Lazy Lungu’s administration lacks a clear road map and most importantly lacks FISCAL DISCIPLINE…how can you subsidise fuel and still carry on with very costly infrastructure development.
Sadly our government are clutching at straws now. It reminds me of the last days of KK and the subsequent exodus of the Zambian professionals to better places. My problem is not with Lungu and his government, but with the whole Zambian person. We have created a cycle of power, degradation of constitutional respect, short term visions, borrowing, ignoring of those locals in the know, especially entrepreneurs and professionals, and then trying to please to retain power. Where do you think the country will end? The Kwacha cannot get better without industrialisation by the natives. You will never develop Zambia through foreigners period. It is a basic concept together with adequate constitutional controls on politicians and the presidency.
When you talk about Ghana Have seen the future for Ghana where it lies long term and what the short term breather for additional 918 USD on the its sovereigns will have the effect
Its artificially if does not immediately alter the structural and you might as well fast and save to live a full life well stocked You cannot also decommission on going projects and lose some savings arisen and also remove to increase energy prices
You can earn or save 1 Billion somewhere without even getting the Little IMF package Just focus on hard work that adds a GDP and change the debt inclined Financing within those measures
voxeu…
voxeu.org/article/imf-programmes-greece-vs-iceland
So if the IMF have had a snap preview of the expenditure and concluded that fuel is being subsidised…then ask yourselves where is this money coming from? Eurobond? You know see why it is important to insist on transparency and accountability via press conferences…its evidently clear that Lazy Lungu and his team will lie and throw money at anything just to cling on to power even if you suffer they only care about 2016…at least MMD had common sense not these reckless empty tins.
Moreover Lungu can turn down help from the devil now because in his simplicity brain he has the cushion of borrowed Euro-bond…he or the next gov’t will have to go to devil next year when all the Eurobond has been consumed due to their shortsightness; by then the devil will snigger at us – the terms and conditions will be much tighter for us. We urgently need greater say and more transparency in the way our money is spent to stop this selfishness by these elected representatives who will not even be present when time to off these loans is due.
The opposition should be pushing for greater say or Parliament foresight on such issues as this is now a serious issues.
*….present when these loans is due.
IMF will never solve a problem; they create economic crisis and later start influencing political, economic and social decisions….their objective is to gain power and not to help…please wake up…be open minded and mindful of the actions preceding the final launch of the New World Order…Edgar is God chosen…that’s why all the problems the country is going through now are the result of the strong opposition to Edgar’s approach to leadership provision… No one wants to involve God the creator in problem solving….
At this stage we do not need help from IMF…elections aside …we need God’s devine Intervention…
Will god pay my rent???
So God now chooses leaders..what folly..even Hitler was god chosen for the German people at the time…that’s how foolish you sound.
@Pegt, POLITICS ASIDE, – so you are also following events around the globe in view of NWO? Am trying to but to be honest, it is not easy to keep up. I fear those years to come.
Coming back to political and economical issues – Point of correction, the problems the country is going thru’ is as a result of corruption and embezzlement of funds. Prophet T B Joshua lists that as one of the problems causing the economic meltdown in the world – particularly Africa. On a global basis, it is because of creation of wars. Going to war without asking God.
I totally support the President’s position on this issue. This is what we call HELP WITH STRINGS ATTACHED; What we all need to understand is that even advanced economies offer subsides. Fuel drives the engine of the economy so even a minor adjustment will trigger increases of prices of all are essential commodities. To what extent will an injection of a billion dollars into our economy act as mitigating factor to the challenges we are going through? What we must know is that this IMF aid package is nothing but a debt. It’s not a panacea to our problems if anything it will compound our problems.
President Lungu can’t win with the tribalists.
If he had agreed with the IMF conditionalies he would have been called all sorts of names.
Personally I think the government should cut down on some projects like Universities construction which do not have immediate impacts.
People just accept you have a clueless government which resorts to prayers to manage the economy. Ati please god appreciate the kwacha. Ba PF be serious.
THERE IS MORE TO THIS DOLLAR ISSUE THAN MEETS THE EYE. NOT THAT I WOULD LIKE FUEL TO GO UP, BUT HOW COME THE DOLLAR HAS NOT AFFECTED THE FUEL? ANYONE ELSE THINKING ON THESE LINES?
I think the IMF already answered that in their report and if you read carefully, also in the article above. 🙂
With or without the Financial crisis or with or without a IMF supported efforts ,a prudent country and leadership should do what is being done ALREADY ,go through some belt tightening- what is commonly called austerity IMF support is only a cushion and not necessary a Solution
There is always an explicit request to certain structure measures as conditions for the financing specifically for those identified and may not necessary work for each target country or programme
Often the IMF programmes will emphasise and promote lower spending in that fiscal adjustment and achieve low inflationary levels which could be a tall head order for Zambia given the level at inflation…
14% and to reduce it below single near 6% in a shorterm with a 1 Billion support will be massive a change in structural programmes and also the impact on the growth prospects and demographics identified already in the Zambian economic outlook will be too much for the economy and the people Let IMF increase the bailout to 5 Billion and increase the term of repayment for Us to structurally adjust and fit in the Tights
There is no diarrhoea capital flight in Zambia and depreciation of the kwacha is only a cycle in the global context Contrary to the expectations Interest rates and Inflation rates are not outside the ambit of Bank of Zambia They can…
That’s is the Lungs we had been wanting to see. Zambia is not for sell. Bravo Mr. PRESIDENT. We need leaders with like you on this.
We need a clueless idjiot like this just like we need a hole in the head!
This M0R0N is busy drinking his JAMESONI while Zambia is collapsing and all he is interested in is getting re-elected.
They can only go thus far For the Future lets learn to know when its right to go sovereigns,supranational and indeed private type of Financing and oppose either way mortgaging impliedly the assets in our mining commodities locking ourselves the potential to grow mean fully on those resources in copper and avoid onerous conditions and debt indentures without a short term superior adjusted return
Avoid that cycle and Financial Cyrus being tossed in cycles on your own Financial Accounts often changing desks from debt providers to bailouts
Once beaten twice is no excuse its folly
Viva my President ECL .m.
THUMBS UP MR PRESIDENT! LET THOSE CHAPS GO TO HELL WITH THEIR PACKAGE
IMF STAFF VISIT REPORT ON ZAMBIA
Press Release No. 15/531
November 20, 2015
At the invitation of the authorities, an International Monetary Fund (IMF) team led by Tsidi Tsikata visited Zambia during November 11–20 to review recent economic developments and discuss the authorities’ policy responses to the macroeconomic challenges currently facing the country.
At the end of the mission, Mr. Tsikata issued the following statement:
“The Zambian economy is under stress. Low copper prices and a severe electricity shortage are straining economic activity. The Zambian kwacha has lost half of its value since the beginning of the year, causing difficulties for many segments of the economy and population, and putting upward pressure on inflation. Moreover, domestic and external financing…
It is amazing how we can quickly blame others for things that we do not even understand. The country is heavily indebted for the size of our GDP and some people still want to just push for more and more debt without even thinking. Not long ago most bloggers were complaining about debt of our country to day they want more, what has changed? I think we need to slow down and think carefully before we contract more and more debt. The IMF whatever the acronym means is not a charity organization, they are in business just like those people who come to you to sell you life policies or cell phones. If you think you really need a phone or a life policy then go for it but be mindful of the fact that you are able to afford the associated cost. If you cannot afford do not take it. The aspirations of…
Correctly observed infact the UPND cadres above condemning the President have no clue how government runs and hence oppose anything including its supreme leader.No one really knows what their ideology is, whether they are capitalist or Reactionary…
Well done Mr President ! IMF have bad economic policies and in the long run Zambians were going to suffer.Latest guys….Mmembe was today almost beaten by irate residents at Livingstone airport.He was quizzed to state at which point President Lungu was booed.He was made to sweat until vigilant police officers whisked him away to a Prof light plane bound for Lusaka at about 13hrs.The Livingstone based Post correspondent Mbulo is now in hiding and people in Livingstone are looking for him to account for his lies.It is alleged that UPND has given him money to be writing ant PF stories.
Just say PF cader thugs, not the general population, who want no opposition to the bad economic state of affaires.
Wow. What a totally dunderhead comment.
Although I don’t agree with how President Chagwa is currently running Zambia, & most problems we find ourselves in today are of P.F’s own making, I take my hat off to him for telling the EVIL I.M.F, to “FCUK OFF”
I.M.F, are Vampires as deadly as I.S.I.S!!
The president has made a bold decision! This is what we need. The IMF is a criminal organisation which seeks only one thing…POWER!! You think they care so mych and want to help? Our president is bold to reject their offer Zambia does not need anymore debt.
Wrong way round!
IMF has GOT the power.
It is Lungu that is looking for it!
Get your facts straight.
There is too much corruption in some of these media houses and they should be made always to account for their lies.The best Lungu can do is to close the post which is not adding any value to our Country.The ka post reporter Mbulo has never done any journalism course and such are the staff the homo uses.
Those Police officers who saved the Homo should be charged.How do you protect an evil man like mmembe ?
Mmembe is as evil as IMF…….We don’t want them in Zambia.Lungu is taking too long to sort out this chap.He is inhuman and fit to live with animals in a park and not in Lusaka.
Mbulo is a kachema and now i understand why his writing is pro nega nega formular always.Wynter maize is working with the tribal party to try and win elections in 216.They will badly lose to ECL i can imagine !
Well done Mr. President!
Once bitten, twice shy. We’ve been sold down that river before, we don’t need to be victims again. We may be struggling, but we are not helpless. We can solve our problems on our own.
Their aid package is nothing more than a hooking bait. This time around, the fish will not swallow the worm.
Still wishing thinking as always using your heart to think… look around you….you are borrowing to consume and subsidising fuel for selfish reasons, thinking in the short term and hoping for the best but not planning for the very worst.
Maybe you need another of prayers to white Jesus!!
President Lungu on behalf of Zambia has just declined the worst nightmare way. Well done sir! Accepting that dubious IMF package will bring dependence, corruption, lack of accountable government and overall a learned helplessness. Those supporting this loan should ask themselves a simple question, how many people has IMF lifted out of poverty in comparison to China? Statistics show that China lifted 300 million from absolute abject poverty into sustainable working class. This is the single largest poverty reduction program in the history of the world! Probably the most significant Social Event of the 20th Century. IMF is a charlatan organization when it comes to African countries.
Before you praise this lazy Lungu go and read the IMF report…it clearly states that this gov’t lacks fiscal discipline and not showing the true cost of fuel…in the long run who do you think will pay for all these lies??????
Biggest problem with Zambians is that you have very small brains.
Three years ago Zambia had usd3.6b in the treasury.
The Imf merely want to give us a usd1bn to stabilize the kwacha, meaning if fiscal planning had been in place we would not have needed the imf, we would have used part of the treasury to keep our economy stable.
What Zambians should be saying is that, like a retired man, we blew our resources and messed our economy.
Whether lungs says yes or not to Ima, fact is that the pf has failed to run the economy of our land and migrated its citizens into abject suffering
Imagine, some are even praising the villains by turning a blind eye to all the problems the country is facing.
The govt can start by reducing the bloated cabinet, deputy ministers, perm secs in addition to reducing their allowances, removing DCs.
Then I will be able to say Lungu is performing – efintu.
Bloggers comments educative, i conclude that the difference between what IMF is sayn and ECL is that IMF i assume is sayn pay for fuel at its correct price today but ECL is saying its better zambians dont know so that their future children wil pay. i wil b long gone by then, This is because grz has facility for fuel with ADB, african dev, bank, this is were this fuel debt is accumulating
President Lungu, thank you once again for the position you have taken, KK missed that opportunity to reject an offer from IMF in 1976 but he regretted that position. HH has no position on the mines and IMF because he works for charlatans; the primary mission of UPND is to hold Zambia down as it is being looted by global multinationals. The mission of the fisherman is not to feed the fish. If the Fish doesn’t understand that, It’s the Fish problem. If it’s Free, you are the product, simple.
And who created the problems the country is facing? The one who mismanaged the economy was it IMF or PF?
Well done Mr President. IMF kuti twabelela Lelo teti Tulabe the wound they’ve left on us recently when MND was in power over the structural adjustment programme! What improvement have we archived from IMF advice and you want more advice from them. Shame on you…!
A devil is a lair most people forgets fast, especially under 5 supporter are you nt the ones who complained bittery when the subsidy on various products was removed? Why support such evil?
Ba Lungu God bless you.
Tsidi Tsikata!
WE ARE HEADED FOR VERY DIFFICULT WATERS. WE ARE PRACTICALLY IN THE POSITION GREECE WAS IN A FEW MONTHS AGO. ONLY DIFFERENCE IS QE DONT HAVE AN ORGANISATION LIKE THE EU TO BAIL US OUT. THE IMF IS OUR ONLY SAVIOR AND AS MUCH AS LUNGU WILL TRY TO BE HARD HEADED AND TRY TO TAKE POPULIST POSITIONS HE KNOWS THERE IS NO MONEY TO FUND HIS BUDGET AND EVENTUALLY WILL HAVE TO CAVE. FELLOW ZAMBIANS THE PF HAS PUT US IN THIS POSITION BY HAVING A VERY CARELESS FISCAL POLICY. LUNGU IS IN NO POSITION TO TURN DOWN THE IMF RIGHT NOW.WE NEED MONEY LIKE YESTERDAY. IN THE NEXT FEW WEEKS EVERYTHING WILL DISINTEGRATE LEADING TO THE RESIGNATION OF CHIKWANDA AND KALYALYA MOVING TO MINISTRY OF FINANCE AND GONDWE COMING BACK TO BOZ.IMF IS HERE AND GET READY FOR MAJOR BUDGET CUTS. ITS THE ONLY WAY TO BEGIN THE…
PLEASE SHOW US THE COUNTRY THAT HAS BEEN DEVELOPED BY I’M ECONOMICALLY? WHAT HAPPENED TO SAP? WHERE DID THAT LEAVE ZAMBIA, GHANA, MALAWI ECONOMICALLY SPEAKING. ONE SOLUTION FITS ALL DOES NOT WORK. MEASURES DONE TO GHANA CANNOT WORK FOR ZAMBIA. LOOK AT BOTSWANA, IT HAS NEVER ENTERTAINED IMF. WHERE IS THIS NATION ECONOMICAL WISE?
like the children of Israel who chose to go back to Egypt where they were oppressed, Zambians in 2011 and 2015 chose the path of destruction
IS IMF THE ONLY MONETARY FUND TO BORROW MONEY FROM? BEFORE SATA DIED WE NEVER USED TO HEAR ABOUT IMF. WE MOSTLY HEAD AFRICAN DEVELOPMENT BANK. NOW THAT SATA IS DEAD THE UGLY HEAD OF IMF IS SHOWING OUT. ON THE OTHER HAND- WHAT HAS GONE WRONG WITH LT READERSHIP? JUST FEW WEEKS AGO AND BEYOND THEY WERE CONDEMNING PF’s BORROWING. HOW COME TODAY ALMOST EVERY READER IS ANNOYED WITH ECL’s REFUSAL TO BORROW US$1BILLION? FOR ME THE REFUSAL TO ACQUIRE MORE DEBT FROM IMF BY ECL IS SPOT ON THOUGH THE PERSONAL LOSS OF ELECTIONS DOESN’T APPEAR WELL. PF SHOULD FIND INTERNAL SOLUTIONS TO ECONOMIC ILLS. ZAMBIA IS TOO CLOSE TO CHINA AND USA AND THE WEST ARE VERY UNCOMFORTABLE WITH THAT. ABOMA HAS BEEN MADE PRESIDENT BY WHITES IN ORDER TO SNATCH AFRICA, WHICH HAS BEEN LOST BY THE WEST, FROM CHINA WHICH…
ZAMBIA IS TOO CLOSE TO CHINA AND USA AND THE WEST ARE VERY UNCOMFORTABLE WITH THAT. ABOMA HAS BEEN MADE PRESIDENT BY WHITES IN ORDER TO SNATCH AFRICA, WHICH HAS BEEN LOST BY THE WEST, FROM CHINA WHICH HE HAS FAILED. RICH INDEPENDENT AFRICA IS BAD FOR THE WEST.
@PETER I AM INCLINED TO AGREE WITH YOU TO A LARGE EXTENT. HOWEVER THE REALITIES OF MACRO ECONOMIC FUNCTION ARE THAT WE HAVE CERTAIN OBLIGATIONS THAT HAVE TO BE FUNDED TO HAVE A FUNCTIONAL SOCIETY. HEALTH CARE, DEFENCE AND SECURITY AND OUR JUDICIARY ARE SOME EXAMPLES. WE ARE AT A POINT WHERE WE WILL NOT BE ABLE TO PROVIDE BASIC NEEDS. OUR UTILITIES ARE CRUMBLING TOO. AS MUCH AS WE WOULD WANT TO LIMP ALONG UNTIL WE RECOVER PEOPLE NEED CERTAIN SERVICES TO SURVIVE. FACED WITH THIS DAUNTING TASK HOW DO WE PROCEED? WE ARE ALREADY IN A BIND WE NEED HELP TO START A RECOVERY. ADB ITSELF IS STRESSED RIGHT NOW AND LOOKING AT THIER LENDING MATRIX ZAMBIA IS A RISK THEY WOULD BE FOOLISH TO TOUCH. IMF IS OUR ONLY BET ESPECIALLY BECAUSE THEY ARE THE ONLY ONES THAT MIGHT PROVIDE REASONABLE RATES AND TERMS…
We have been there before with IMF packages. it was horrible. KK parted ways with IMF in the mid 80’s after the first food riots in Zambia. Unfortunately, monetary pressure forced him to go back to them and Zambia woke up to a nightmare. Those were dark days, the lowest Zambia has ever sunk! The situation in Zambia today is heaven in comparison, but It can be much better. ZCCM was sold for a laughable $25 million. Zambian women often cried due to humiliation they suffered at the hands of customs officers in Zimbambwe as they travelled near and far in search of a better life. That was the time a good number of Zambians with skills left the country. No third world country has flourished using IMF packages. We have been down that road before and it was hellish. Lungu got it right. IMF can…
IMF is basically a loan shark, icibanda. The primary aim is to make a profit and not to help.
Lungu has made extensively consultation for him to refuse IMF idea. lets praise him and his team for standing firm to refuse IMF idea . IMF made business in such a manner. its more than enough getting loans, our kwacha ll soon gain weight. God ll give us enough rains and production ll take its course the Copper price has started going up and Chine has also gradually started increasing Consumption on this commodity. We shall pull thru this crisis lets die a little.
IMF should not say you can make savings from fuel because That is a cultural issue that is structural for Zambia to do Most of the fuel consumption is not productive It does not add a marginal productive output to register a return on most of the fuel bought If productivity was their as a direct contribution to the growth of GDP in revenues, then we would not be talking about it
The argument by IMF is flimsy and when you look at PRICING CURRENTLY you will agree that its near to the famous VEDAVELLI 1989 WORLD BANK WORKING PAPER as improved upon by ERB and other pricing initiatives To achieve cost reflectivity most people will…
not marginally perform to potential Its gradual process not sudden austerity by IMF especially in the emerging
To bailout someone means Your restructure his current debts and tenure by prepaying them in this case the Euro Bonds in a typical ” Credit Swap”” Then you provide bridging Financing on the current expenditure GAP for the Forecast period and lengthen the contracted repayment period to ensure cash flows are recoupled and you charge interest terms less variables and friendly than contracted In this case IMF proposal is not near any of that
Its does not qualify as a bailout It only increases the situation and in many case makes it worse
They need to structure a better package around the USD 750 Million and 1 Billion Euro Bond Term…
structures Meaning the package should be above USD 2 Billion and a little operational if it will be sincerely done with those risks matching them appropriately for Zambia
Vantage Point has given us of what happened in the past with policies of IMF/WB. SAP, Privatization etc. With or without Lungu, lets reject IMF/WB aid.
watch movie titled MERLIN.see the behavior of the character called Edwin who claimed to be a physician when in actual sense he was a magician and sent a terrible desease in the kingdom meets the son of the king claiming to have the medicine for all ills.when the king heard about him(edwin) he was so fast and gave out the job to him.The end result was terrible for the king,subjects and even for the true pgysician who was put aside by him in favour of edwin the magician.he almost wanted to kill them all using magic.This same applies to IMF.IMF has never been there to help develop any Nation apart from giving harsh conditions for its assistance.I support lungu for that brave decision.The same people critising lungu today will be the same people saying lungu has sold the nation to IMF.please…
UPND oppose anything Lungu does. They would still have condemned if he had accepted. In this case he did very well to reject their package. Even HH knows their packages have never helped any developing country in Africa. For this action, he will get votes even from level headed UPND members.
All UPND want is people to suffer under IMF conditions so that they can reject the PF. Edgar is far smarter than most of them. He thinks ahead of them and they keep getting frustrated. The biggest frustration is coming to you guys in 2016. Viva Edgar for saving the masses from IMF messineries.
If you follow the free market economy which we have adopted from the capitalists you are not supposed to tinker with the national currency. PF have found themselves between a rock and a hard place. The Kwacha has fallen. Fuel prices should have gone up unless Lungu had interfered with the Kwacha. The option? Secretly subsidise fuel with the eurobond. Shouldn’t we just resort back to the controlled economy?
The idea from HH and his UPND cadres that Zambia should accept IMF bailout shows a dangerous naivete and serious betrayal of everything that KK and his colleagues stood for. HH, Dipak , et al are there to prop up anything that subdues local initiatives: the IMF system itself must be shut down and replaced by something completely new.
The problem is not IMF and its conditions, but the current and previous government policies. indecisions, mismanagement, corruption, stealing by substandard work (government contracts), employing unqualified and incompetency persons to key positions in government and state companies (having an academic qualifications does not mean one is qualified to be in a key position), wrong priorities-eg borrow to buy security products, paving roads which are not important or critical to economy instead of investing in industries or farms that will yield profits to pay back loans and be used in paving unimportant roads or give birth to other industries; ministers placed in wrong ministries, What has the Eurobond achieved? Nothing, misused, substandard work etc. The same had happened to previous IMF…
Good decision Mr. Edgar Lungu so far you are proving yourself a good President, you are not bad so far.
Obviously this article is based on hearsay, and here are the dunderhead “experts” making all kinds of analysis. The way I know national economic solutions are found is by gathering data and analyse the solutions. In this case the IMF team was here for only a few days, therefore I expect that they gathered the required data, consulted the zambian government and heard the way government looks at the situation. The IMF then floats some tentative proposals, some preliminary ideas pending further consultations and consolidation of ideas. We are yet to hear the way forward. The way dunderheads are jumping to conclusions makes one wonder their analytical capacity. Remember that the wheels of government turn slowly, so slow that citizens may wonder if there is any urgency at all. But this is…
Apa pena walasa. Last time ECL went to borrow money from China, UpDn supporters were against the borrowing, but today they want ECL to borrow from the IMF. It looks to me like UpDn supporters will oppose what ever action ECL takes without thinking. This is the main reason why the UpDn party will always remain in opposition.
Remember that the wheels of government turn slowly, so slow that citizens may wonder if there is any urgency at all. But this is necessary because extensive consultations will have to take place both in government and IMF, to consider pros and cons and arrive at final decisions. Governance is not like running your personal ranch, no, you have to look at Peter, Mweemba, Chilufya, Ng’ambi, Daisy, Kanongesha etc and see that these fit into the equation together.
God forbid if the comments above by dunderheads indicate the way economic manager intends to run this country!
Chikwanda is not as clueless as most of you think. The man knew the IMF would make these demands and hence invited them to try and get through to Lungu. With dwindling revenue government needs relief from somewhere, question is if not IMF then who? Which financial institution will risk their money on a government unwilling to make such reforms as painful as they may be? The fact that the finance minister and the president are on different pages is not encouraging either. Lungu is being extremrly selfish, how do you continue spending money that simply is not there? When in a hole stop digging!
Yamba: “The Zambian government will undertake consultations to define the forms of further engagement with the IMF”.
Let me interpret this in simple terms for those who are jumping to conclusions without any concrete basis whatsoever, and those who read and interpret English statements from their own ethnic languages. Yamba is saying that the deal is yet to be concluded, but we can tell the IMF what measures the government intends to undertake from its reading of the situation. Incidentally the government initial measures are not at variance with whatever the IMF itself would like to see, but they may have additional ideas.
@ kapotwe, my three posts above should help save you from embarrassment. Take time to read, listen, and understand before you speak. Those are the marks of a sound intellect.
Terrible..you have said so much that its hard to grasp your point. The IMF has put its cards on the table and made their recommendations, remember we are the ones that invited them for negotiations. Now, Mr Yamba says they will look at alternative measures to cut costs but the question is what are they and will they have less of a negative influence politically as this seems to be government’s main concern? As I’ve stated, Chikwanda is no fool and must have know the imf would demand these measures a la Ghana. This is quit a predicament we find ourselves in but one thing for sure is that practical measures are needed now to relieve pressure on the treasury. Perhaps abolishing or suspending these new ministries would be a progressive step to a leaner less expensive government, but I…
I know of families who are undergoing a lot miseries because of kaloba. we got 750 million Eurobond last year. Did we become any better? we are a big clueless family. A well placed country could have invested that money wisely and results could have been apparent by now.
Akaloba kabi, IMF is a complete well rounded AO.
Lungu is very dull ,we need HH and UPND the rumour has is kambwili want to resign.
Only people who dont understand the intrcacies of IMF can comment without fully analysing the consequencies.IMF is not there to make us save money.They are there to make money out of the zambian people.In short no bank in the their own sense is there to make us save our or make us rich.
If this is what Edgar has told the IMF then am definately giving a thumbs up!
Bill.
Zambians must be realistic with the way they look at economic issues. I am not a supporter of Lungu but I support him on his refusal to accept the IMF package. Many of you criticizing Lungu may be too young to remember what IMF did to the economy during the Kaunda regime. IMF policies are very destructive. This is the same IMF that wanted Zesco to be sold off. Had Lungu accepted their proposal, many of you would have condemned him after seeing the effect of IMF policies. Actually IMF is a firm believer in down sizing. Many institutions like central government, local authorities and parastatals would have been forced to lay off thousands of workers to meet the conditions set by IMF. It is important for us to have a clear understanding of IMF policies before we criticize Lungu. We are…
We are already going through serious economic challenges. Allowing IMF to worsen the current economic challenges will not be in the interest of any Zambian.
The president might be right. It is not always true that what the IMF says is cast in concrete. Remember what happened to President Chiluba who was advised by the same IMF to privatize everything owned by government and how the whole thing turned into job losses and brought about misery to most Zambians! The same IMF again said privatisation was not properly done, what more ill advise do you need? It is not always true that whatever advise is given by IMF works well for all countries, you same Zambians will be condemning the president if things become more sour arising from the IMF advise!
Hay Edgar lungu as made a sensible decistion of rejecting the proposal from the IMF, it was such a ash one to take , if he hard accepted it he wud hav made the current situation more worse than it is wright now, but I want to tell u my fellow zambian to elect a leader who is aligeble enough to govern the nation without compromise who has the strong advocacy in the mining sector who is able to transform and diversify the economy
Long live Mr. President,
The IMF has caused more problems. Their money is tied with unpopular conditions. e.g.
“FORMER finance minister Edith Nawakwi has revealed that the IMF and the World Bank pressured the Zambian government to privatize the mines on the pretext that copper prices would not increase in 20 years.”
The World Bank and IMF must:
• Radically cut the number of binding and non-binding conditions attached to their lending;
• Immediately stop imposing controversial economic policy conditions which push privatisation and trade liberalisation related reforms;
• Redefine ‘criticality’ to ensure that it focuses on fundamental fiduciary concerns which enhance developing countries citizens’ ability to hold their governments to account, rather than developing countries’…
Honestly how do we halt development just for stabilization of Kwacha…NOSENSE…EL that’s the way to go…You have my backing on this one
Have anyone wondered why the animal so called ‘imf’ attaches condition to every money they give out.
Implication removal fuel subsidies and increase of electricity tariff will naturally trigger cost of production resulting into high costs of goods and services – the common Zambian is to suffer.
stop infrastructure development a ‘killer advice’ meaning no more road, school, hospital construction, loss of jobs and so forth…
We say no to such bull dozing conditions…
Thank you Mr President for taking this bold step. Debts just enslave. It may look attractive at first but wont yield anything to the Zambians in the long run. Prophet T.B. Joshua has advised leaders not to succumb to pressure of borrowing because it will just worsen matters. Zambia will recover. Lets stop looking to outsiders for help. Let us loose ourselves from the begging mentality and believe God that He can take us out of any difficult situation.
Yes Zambia we can do it ourselves. Let us believe in ourselves and not in IMF. Mr President, this is a very sensible and progressive decision you have made. God bless you and give you more wisdom and insight to take our mother Zambia forward.
Before making comments on every published matter, i urge you all to analyse it and think of what the writer wanted to bring out as this will help not debate on the opinionated article of the author or any media house. one love, one Zambia!!!